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February 4, 2011
FOR IMMEDIATE RELEASE

Martinsburg Physician Convicted
on 34 Counts of Health Care Fraud

MARTINSBURG, WEST VIRGINIA — A 55 year old Martinsburg physician was convicted on 34 counts of health care fraud on February 3, 2011, following a three and one-half day trial in federal court in Martinsburg before Chief Judge John Preston Bailey.

United States Attorney William J. Ihlenfeld, II, announced that the jury convicted DANINE A. RYDLAND, MD, on 34 of the 38 charges, based on evidence presented of the fraudulent billings which she submitted to Medicare, Medicaid, Unicare (Medicaid HMO) and the Public Employee Insurance Agency (PEIA) health care benefit programs during the period of June 1, 2004, to December 18, 2008. The evidence showed that as part of a scheme to defraud Medicare, Medicaid, Unicare and PEIA during this time period, Dr. RYDLAND caused Medicare, Medicaid, Unicare and PEIA to pay for medical services which she did not, in fact, provide. Dr. RYDLAND provided medical services which did not qualify for payment at higher rates, and then falsely entered codes on her bills that reflected she had provided those higher level services. It was also part of her scheme that she caused Medicare, Medicaid, Unicare, and PEIA to pay for services that she did not provide at all. Dr. RYDLAND’s actions resulted in losses of approximately $42,000 to Medicare, approximately $85,000 to Medicaid, approximately $13,000 to Unicare, and approximately $8,000 to PEIA, for a total loss of approximately $148,000.

Dr. RYDLAND, who is currently free on bond pending sentencing, faces a maximum penalty of 10 years imprisonment and a fine of $250,000 on each count of the 34 counts. United States Attorney Ihlenfeld praised the work of investigators who uncovered the scheme and stressed the importance of combating fraud within our nation’s healthcare system. “Preventing such abuses is a major priority of this office, and hopefully, this prosecution will send a strong message that we will vigorously pursue health care professionals who are engaged in this type of unlawful activity.”

The case was prosecuted by Assistant United States Attorneys Erin K. Reisenweber and Robert H. McWilliams, Jr. The case was investigated by the United States Department of Health and Human Services - Office of Inspector General and West Virginia Medicaid Fraud Control Unit of the West Virginia Department of Health and Human Services.